He also served as
chairman of the executive committee of the Republican State Committee of
New York. In 1871, he formed the afterwards well-known firm of Arthur,
Phelps, Knevals, and Ransom.

President Grant, without solicitation and unexpectedly, appointed
General Arthur collector of the port of New York, on the twentieth of
November, 1871. He accepted the position with much hesitation, but it
met with the general approval of the business community, many of the
merchants having become personally acquainted with his business ability
during the war. He instituted many reforms in the management of the
custom-house, all calculated to simplify the business and to divest it,
to a great extent, of all the details and routine so vexatious to the
mercantile classes. The number of his removals during his administration
was far less than during the rule of any other collector since 1857, and
the expense of collecting the duties was far less than it had been for
years. So satisfactory was his management of the custom-house, that,
upon the close of his term of service, December, 1875, he was
renominated by President Grant. The nomination was unanimously confirmed
by the Senate without reference to a committee, a compliment very rarely
paid, except to ex-senators. He was the first collector of the port of
New York, with one or two exceptions, who in fifty years ever held the
office for more than the whole term of four years.

Two years later General Arthur was superseded as collector by General
Merritt. The Honorable John Sherman, secretary of the treasury, on being
questioned as to the cause of the removal of General Arthur as collector
of customs at New York, said:--

"I have never said one word impugning General Arthur's honor or
integrity as a man and a gentleman, but he was not in harmony with the
views of the administration in the management of the custom-house. I
would vote for him for Vice-President a million times before I would
vote for W.H. English, with whom I served in Congress."

General Arthur, in a letter written by him to Secretary Sherman, on his
administration of the New York custom-house, said:--

"The essential elements of a correct civil service I understand to be:
First, permanance in office, which, of course, prevents removals, except
for cause. Second, promotion from the lower to the higher grades, based
upon good conduct and efficiency. Third, prompt and thorough
investigation of all complaints and pro